Last month, we reported that the Hungarian government and Eurostat reached an agreement concerning the (re)classification of Hungarian public debt levels. For years, the two parties were engaged in a debate over whether the debt of certain state-run entities should be included in Hungary’s public debt levels.
According to g7.hu, an agreement had been reached between the two parties: Hungary would have to budge and include the debt levels of “captive institutions”, but only after the 2018 national election. The changes are expected to be applied retroactively, as well.
Now, portfolio.hu reports that Eurostat has confirmed that Hungary’s public debt levels will indeed increase after the election next spring.
According to portfolio.hu, Eurostat says that folding Eximbank’s figures into Hungary’s public debt will likely raise Hungary’s public debt levels.